Question

Jackie Company had the following accounts and balances on December 31, 2016:

Income Taxes Payable $62,000 Notes Payable, 10%, due June 2, 2017 $ 1,000
Allowance for Doubtful Accounts 18,500 Accounts Receivable 70,000
Accounts Payable 25,800 Discount on Notes Payable 150
Interest Receivable 4,900 Current Maturities of Long-Term Debt 6,900
Unearned Revenue 4,320 Interest Payable 3,110
Wages Payable 6,600

Prepare the Current Liabilities section of Jackie Company’s balance sheet as of December 31, 2016.
what is the total current liabilities?

Answer 1

2016 Balance Sheet

$62,000 Income Taxes Payable

$1,000 Notes Payable

$25,800 Accounts Payable

$6,900 Current Maturities of Long-Term Debt

$6,600 Wages Payable

$4,320 Unearned Revenue

$3,110 Interest Payable

$109,730 TOTAL CURRENT LIABILITIES

Step-by-step explanation:

Account of Current Liabilities , the criteria is to have a liquidity speed less of one year

Income Taxes Payable

Notes Payable

Accounts Payable

Current Maturities of Long-Term Debt

Wages Payable

Unearned Revenue

Interest Payable

These accounts had to be paid in less than one year, even the Maturities of Long-Term Deb which would be classified of long term to short term because had to be paid during the next year.

Unearned Revenues is recognized as a liabilities because the company owes the money due to that the service or goods wasn't still provided.

The Discount on Notes Payable are not deduct of the Notes Payable account becuase this are recorded for the net value, or the discount it's applied in the moment of the payment.

The other accounts such as, Allowance for Doubtful Accounts, Accounts Receivable, Interest Receivable, correspond to the current assets section.